Securities and Exchange Board of India (Investment Advisers) Regulations, 2013

THE GAZETTE OF INDIA
EXTRAORDINARY
PART – III – SECTION 4
PUBLISHED BY AUTHORITY
NEW DELHI, JANUARY 21, 2013
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 21st January, 2013
SECURITIES AND EXCHANGE BOARD OF INDIA
(INVESTMENT ADVISERS) REGULATIONS, 2013
No. LAD-NRO/GN/2012-13/31/1778.-In exercise of the powers conferred by sub-section (1) of Section 30 read with clause (b) of sub-section (2) of Section 11 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Securities and Exchange Board of India hereby, makes the following regulations, namely, —
CHAPTER I
PRELIMINARY
Short title and commencement.

1. (1) These regulations may be called the Securities and Exchange Board of India
   (Investment Advisers) Regulations, 2013.
   (2) These regulations shall come into force on the ninetieth day from the date of their publication in the Official Gazette. Definitions.
2. (1) In these regulations, unless the context otherwise requires, the terms defined
   herein shall bear the meanings assigned to them below, and their cognate expressions shall be construed accordingly,– (a) “Act” means the Securities and Exchange Board of India Act, 1992 (15 of 1992); [(aa) “accreditation agency” shall have the same meaning as assigned to it in clause (aa) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012;

Inserted by the SEBI (Investment Advisers) (Third Amendment) Regulations, 2021, w.e.f. 03-08-2021.

(ab) “accredited investor” shall have the same meaning as assigned to it under clause (ab) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012;] [ [(ac)] “assets under advice” shall mean the aggregate net asset value of securities [*] for which the investment adviser has rendered investment advice irrespective of whether the implementation services are provided by investment adviser or concluded by the client directly or through other service providers;] (b) "Board" means the Securities and Exchange Board of India established under
section 3 of the Act;
(c) “body corporate” shall have the meaning assigned to it in or 5 [under sub￾section (11) of section 2 of the Companies Act, 2013 (18 of 2013)]; (d) “certificate” means a certificate of registration granted under these regulations; [(e) “Change in control” – (i) in case of a body corporate – (A) if its shares are listed on any recognised stock exchange, shall be construed with reference to the definition of control in terms of regulations framed under clause (h) of sub-section (2) of section 11 of the Act;

Inserted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. 3 Substituted for “(aa)” by the SEBI (Investment Advisers) (Third Amendment) Regulations, 2021, w.e.f. 03- 08-2021. 4 Omitted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. Prior to its omission, the following words of clause (ac) read as under:
“and investment products”
5 Substituted for the words, symbols and numbers “under sub-section (7) of section 2 of the Companies Act, 1956 (1 of 1956)” by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. 6 Substituted by the Securities and Exchange Board of India (Change in Control in Intermediaries) (Amendment) Regulations, 2023 w.e.f. 17-1-2023. Prior to its substitution, clause (e) read as under:
““change in control” in relation to a company or a body corporate, means:
(i) if its shares are listed on any recognized stock exchange, change in control within the meaning of clause (e) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011; (ii) in any other case, change in the controlling interest or change in legal form. Explanation.─ For the purpose of sub-clause (ii), the expression “controlling interest” means an interest, whether direct or indirect, to the extent of more than fifty percent of voting rights or interest;”

(B) if its shares are not listed on any recognised stock exchange, shall be construed with reference to the definition of control as provided in sub-section (27) of Section 2 of the Companies Act, 2013 (18 of 2013); (ii) in a case other than that of a body corporate, shall be construed as any change in its legal formation or ownership or change in controlling interest. Explanation – For the purpose of sub-clause (ii), the expression “controlling interest” means an interest, direct or indirect, to the extent of not less than fifty percent of voting rights or interest;] (f) “company” means a company incorporated under the Companies Act, 1956 7 [or Companies Act, 2013]; (g) “consideration” means any form of economic benefit including non-cash benefit, received or receivable for providing investment advice; [(ga) 9 [*] (gb) “family of client” shall include individual client, dependent spouse, dependent children and dependent parents; (gc) “family of an individual investment adviser” shall include individual investment adviser, spouse, children and parents;] (h) “financial planning” shall include analysis of clients’ current financial situation, identification of their financial goals, and developing and recommending financial strategies to realise such goals; (i) “firm” means a partnership firm registered under Indian Partnership Act, 1932 (9 of 1932); (j) “form” means any of the forms set out in the First Schedule; (k) “inspecting authority” means any one or more persons appointed by the Board to exercise powers conferred under regulation 23;

Inserted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. ibid. 9 Omitted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. Prior to its omission, clause (ga) read as under; “ (ga) “CPE” means continuing professional education in terms of clause (f) of sub regulation (1) of regulation 2 of the SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007;”

(l) “investment advice” means advice relating to investing in, purchasing, selling or otherwise dealing in securities 10[] and advice on investment portfolio containing securities 11[] whether written, oral or through any other means of communication for the benefit of the client and shall include financial planning:
Provided that investment advice given through newspaper, magazines, any electronic or broadcasting or telecommunications medium, which is widely available to the public shall not be considered as investment advice for the purpose of these regulations; 12[Provided further that trading calls shall not be considered as investment advice for purpose of these regulations.] (m) “investment adviser” means any person, who for consideration, is engaged in the business of providing investment advice to clients or other persons or group of persons and includes 13[a part-time investment adviser or] any person who holds out himself as an investment adviser, by whatever name called; (n) “limited liability partnership” means a partnership formed and registered under The Limited Liability Partnership Act, 2008(6 of 2009); (o) “NBFC” means a Non-Banking Financial Company regulated by Reserve Bank of India; (p) “NISM” means the National Institute of Securities Market established by the Board; 14[(pa) “non-individual” means a body corporate including a limited liability partnership and a partnership firm;] 15[(pb) “other business activity or employment” means such business activity or employment which is not related to securities and:

10 Omitted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. Prior to its omission, the following words of clause (l) read as under “and investment products” 11 Omitted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. Prior to its omission, the following words of clause (l) read as under “and investment products” 12 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. 13 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. 14 Inserted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. 15 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024.

a. it does not involve handling or managing of money or funds of client or person; or b. it is not related to providing advice or recommendation to any client or person in respect of any products or assets for investment purposes;] (q) “partner” means partner of the firm or a limited liability partnership who renders investment advice on behalf of the firm or limited liability partnership; 16[(qa) “part-time investment adviser” means an individual or a firm, who for consideration, is engaged in the business of providing investment advice and is also engaged in any other business activity or employment;] 17[(r) “persons associated with investment advice” shall mean any member, partner, officer, director or employee or any sales staff of such investment adviser including any person occupying a similar status or performing a similar function irrespective of the nature of association with the investment adviser who is engaged in providing investment advisory services to the clients of the investment adviser; Explanation. — All client-facing persons such as sales staff, service relationship managers, client relationship managers, etc., by whatever name called shall be deemed to be persons associated with investment advice, but do not include persons who discharge clerical or office administrative functions where there is no client interface.] 18[(s) “principal officer” in case of non-individual investment adviser engaged:
(i) solely in providing investment advisory services, shall mean the managing director or designated director or managing partner or executive chairman of the board or equivalent management body who is responsible for the overall function of the business and operations of non-individual investment adviser; (ii) in the activities other than investment advisory services, through separate departments/divisions, may be the person at the management level who is a business head or unit head, responsible for the overall function of the business and operations related to investment advisory services:

16 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. 17 Substituted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. Prior to its substitution, clause (r) read as under; “(r) “representative” means an employee or an agent of an investment adviser who renders investment advice on behalf of that investment adviser.” 18 Substituted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. Prior to its substitution, clause (s) read as under; “(s) “principal officer” shall mean the managing director or designated director or managing partner or executive chairman of the board or equivalent management body who is responsible for the overall function of the business and operations of non-individual investment adviser.”

Provided that in case of non-individual investment adviser being a partnership firm, one of the partners shall be designated as its principal officer:
Provided further that where no partner of firm registered as an investment adviser has minimum qualification and certification requirements provided in these regulations, it shall apply for registration as an investment adviser in the form of a limited liability partnership or a body corporate within such time as may be specified by the Board. Explanation. — The provisions of sub clause (i) shall also be applicable to the principal officer of a non-individual entity registered both as an investment adviser and a research analyst but engaged in no other business activity.] 19[(t) “research analyst” means any person registered under Securities and Exchange Board of India (Research Analysts) Regulations, 2014; (u) “trading calls” shall have the same meaning as assigned to it under clause (zc) of sub-regulation (1) of regulation (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014.] (2) The words and expressions used and not defined in these regulations but defined in the Act, the Securities Contracts (Regulation) Act, 1956 (42 of 1956), the 20[Companies Act, 2013 (18 of 2013)], or any rules or regulations made thereunder shall have the same meanings respectively assigned to them in those Acts, rules or regulations made thereunder or any statutory modification or re-enactment thereto, as the case may be.
CHAPTER II
REGISTRATION OF INVESTMENT ADVISERS
Application for grant of certificate.
3. (1) On and from the commencement of these regulations, no person shall act as an
investment adviser or hold itself out as an investment adviser unless he has obtained a certificate of registration from the Board under these regulations:
21[*]
22[(1A) Notwithstanding anything contained in sub-regulation (1), any application made by a person prior to coming into force of these regulations containing such particulars

19 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. 20 Substituted for the words, symbols and numbers “Companies Act, 1956 (1 of 1956)” by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. 21 Omitted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. Prior to its omission, regulation 3(1) proviso read as under; “Provided that a person acting as an investment adviser immediately before the commencement of these regulations may continue to do so for a period of six months from such commencement or, if it has made an application for a certificate under sub-regulation (2) within the said period of six months, till the disposal of such application.”

or as near thereto as mentioned in Form A of First Schedule shall be treated as an application made in pursuance of sub-regulation (1) and dealt with accordingly;] (2) An application for grant of certificate of registration shall be made in Form A as specified in the First Schedule to these regulations and shall be accompanied by a non￾refundable application fee to be paid in the manner specified in Second Schedule. 23[(3) On and from the date of commencement of these regulations, no person, while dealing in distribution of securities, shall use the nomenclature “Independent Financial Adviser or IFA or Wealth Adviser or any other similar name” unless registered with the Board as Investment Adviser.”] Exemption from registration.
4. The following persons shall not be required to seek registration under regulation 3
subject to the fulfillment of the conditions stipulated therefor, — (a) Any person who gives general comments in good faith in regard to trends in the financial or securities market or the economic situation where such comments do not specify any particular securities or investment product; (b) Any insurance agent or insurance broker who offers investment advice solely in insurance products and is registered with Insurance Regulatory and Development Authority for such activity; (c) Any pension advisor who offers investment advice solely on pension products and is registered with Pension Fund Regulatory and Development Authority for such activity; (d) Any distributor of mutual funds, who is a member of a self regulatory organisation recognised by the Board or is registered with an association of asset management companies of mutual funds, providing any investment advice to its clients incidental to its primary activity; (e) Any advocate, solicitor or law firm, who provides investment advice to their clients, incidental to their legal practise; (f) Any member of Institute of Chartered Accountants of India, Institute of Company Secretaries of India, Institute of Cost and Works Accountants of India, Actuarial Society of India or any other professional body as may be specified by the Board, who provides investment advice to their clients, incidental to his professional service; (g) Any stock broker or sub-broker registered under SEBI (Stock Broker and Sub￾Broker) Regulations, 1992, portfolio manager registered under SEBI (Portfolio Managers) Regulations, 1993 or merchant banker registered under SEBI

22 Inserted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. 23 Inserted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020.

(Merchant Bankers) Regulations, 1992, who provides any investment advice to its clients incidental to their primary activity:
Provided that such intermediaries shall comply with the general obligation(s) and responsibilities as specified in Chapter III of these regulations:
Provided further that existing portfolio manager offering only investment advisory services may apply for registration under these regulations after expiry of his current certificate of registration as a portfolio manager; (h) Any fund manager, by whatever name called of a mutual fund, alternative investment fund or any other intermediary or entity registered with the Board; (i) Any person who provides investment advice exclusively to clients based out of India:
Provided that persons providing investment advice to Non-Resident Indian or Person of Indian Origin shall fall within the purview of these regulations; (j) Any 24[principal officer, persons associated with advice] and partner of an investment adviser which is registered under these regulations:
Provided that such 25[principal officer, persons associated with advice] and partner shall comply with regulation 7 of these regulations; (k) Any other person as may be specified by the Board. Furnishing of further information, clarification and personal representation.
5. (1) The Board may require the applicant to furnish further information or clarification
regarding matters relevant to investment advisory services for the purpose of consideration of the application filed under sub-regulation (2) of regulation 3. (2) The applicant or his authorised representative, if so required, shall appear before the Board for personal representation. Consideration of application and eligibility criteria.
6. For the purpose of the grant of certificate the Board shall take into account all matters
which are relevant to the grant of certificate of registration and in particular the following, namely, — (a) whether the applicant is an individual or 26[a non-individual];

24 Substituted for the word “representative” by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. 25 ibid 26 Substituted for the words “a body corporate or a firm” by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020.

27[(b) in case the applicant is an individual, he and all persons associated with investment advice are appropriately qualified and certified as specified in regulation 7;] 28[(c) in case the applicant is a body corporate, the principal officer and all persons associated with investment advice of the applicant are appropriately qualified and certified as specified in regulation 7;] 29[(d) in case the applicant is a firm or a limited liability partnership, the principal officer and all persons associated with investment advice of the applicant are appropriately qualified and certified as specified in regulation 7;] (e) whether the applicant fulfills the 30[deposit] requirements as specified in regulation 8; 31[(f) whether the applicant, its partners, principal officer and persons associated with investment advice, if any, are fit and proper persons based on the criteria as specified in Schedule II of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008;] (g) whether the applicant has the necessary infrastructure to effectively discharge the activities of an investment adviser; (h) whether the applicant or any person directly or indirectly connected with the applicant has in the past been refused certificate by the Board and if so, the grounds for such refusal; (i) whether any disciplinary action has been taken by the Board or any other regulatory authority against any person directly or indirectly connected to the applicant under the respective Act, rules or regulations made thereunder;

27 Substituted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. Prior to its substitution, clause (b) read as under; “whether in case the applicant is an individual, he is appropriately qualified and certified as specified in regulation 7;”. 28 Substituted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. Prior to its substitution, clause (c) read as under; “whether in case the applicant is a body corporate, all the representatives of the applicant who provide investment advice are appropriately qualified and certified as specified in regulation 7;” 29 Substituted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. Prior to its substitution, clause (d) read as under; “whether in case the applicant is a firm or a limited liability partnership, all partners who are engaged in giving investment advice are qualified and certified as specified in regulation 7;” Substituted for the word “networth” by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. 31 Substituted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. Prior to its substitution, clause (f) read as under; “whether the applicant, its representatives and partners, if any, are fit and proper persons based on the criteria as specified in Schedule II of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008;”

(j) In case a bank or an NBFC proposes to undertake investment advisory services, whether it has been permitted by Reserve Bank of India and the application is made through a subsidiary or separately identifiable department or division; (k) In case any 32[non-individual], other than a Bank or NBFC, which proposes to undertake investment advisory services, whether, the application is made through a separately identifiable department or division; (l) In case an entity incorporated outside India undertakes to provide investment advisory services under these regulations, whether, it has set up a subsidiary in India and whether such subsidiary has made the application for registration; (m) In case a foreign citizen proposes to undertake investment advisory services, whether the applicant has set up an office in India and proposes to undertake investment advisory services through such office; 33[(n) Whether the applicant is enlisted with a body or body corporate recognised under regulation 14:
Provided that the existing investment advisers shall be deemed to be enlisted with such a body or body corporate from the date of recognition of such body or body corporate:
Provided further that the applicant whose application is received before the date of recognition of the body or body corporate as provided under regulation 14 and who is granted the certificate after the date of recognition of such body or body corporate shall also be deemed to be enlisted with such a body or body corporate.] 34[Qualification and certification requirement.

32 Substituted for the words “body corporate” by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. 33 Substituted by the Securities and Exchange Board of India (Investment Advisers) (Amendment) Regulations, 2024, w.e.f. 25-07-2024. Prior to substitution, it read as under:
“(n)Whether the applicant is a member of a recognized body or body corporate as specified under regulation 14:
Provided that the existing investment advisers shall comply with the requirement under this clause in such manner as may be specified by the Board.” 34 Substituted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. Prior to its substitution, regulation 7 read as under; “Qualification and certification requirement. 7(1) An individual registered as an investment adviser under these regulations and partners and representatives of an investment adviser registered under these regulations offering investment advice shall have the following minimum qualifications, at all times:
(a) A professional qualification or post-graduate degree or post graduate diploma in finance, accountancy, business management, commerce, economics, capital market, banking, insurance or actuarial science from a university or an institution recognized by the central government or any state government or a recognised foreign university or institution or association; or (b) A graduate in any discipline with an experience of at least five years in activities relating to advice in financial products or securities or fund or asset or portfolio management.

7. (1) An individual investment adviser or a principal officer of a non-individual
   investment adviser registered as an investment adviser under these regulations, shall have the following minimum qualification, at all times - 35[(a) A professional qualification or 36[graduate degree or] post-graduate degree or post graduate diploma (minimum two years in duration) in finance, accountancy, business management, commerce, economics, capital market, banking, insurance or actuarial science 37[or other financial services as may be specified] from a university or an institution recognized by the Central Government or any State Government or a recognised foreign university or institution or association or a professional qualification by completing a Post Graduate Program in the Securities Market (Investment Advisory) from NISM of a duration not less than one year or a professional qualification by obtaining a CFA Charter from the CFA Institute;] (b) 38[*] (c) 39[Persons associated with investment advice shall, at all times, have a minimum qualification of graduate degree in any discipline from a university or institution

(2) An individual registered as an investment adviser and partners and representatives of investment advisers registered under these regulations offering investment advice shall have, at all times, a certification on financial planning or fund or asset or portfolio management or investment advisory services:
(a) from NISM; or
(b) from any other organization or institution including Financial Planning Standards Board India or any recognized stock exchange in India provided that such certification is accredited by NISM.:
Provided that the existing investment advisers seeking registration under these regulations shall ensure that their partners and representatives obtain such certification within two years from the date of commencement of these regulations:
Provided further that fresh certification must be obtained before expiry of the validity of the existing certification to ensure continuity in compliance with certification requirements.” 35 Substituted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2021 w.e.f . 16.03.2021. Prior to its substitution, clause (a) read as under; “(a) A professional qualification or post-graduate degree or post graduate diploma (minimum two years in duration) in finance, accountancy, business management, commerce, economics, capital market, banking, insurance or actuarial science from a university or an institution recognized by the Central Government or any State Government or a recognised foreign university or institution or association or a CFA Charter from the CFA Institute;” 36 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. 37 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. 38 Omitted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. Prior to its omission, clause (b) read as under; “An experience of at least five years in activities relating to advice in financial products or securities or fund or asset or portfolio management;” 39 Substituted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. Prior to its substitution, clause (c) read as under;

recognized by the Central Government or any State Government or a recognized foreign university or institution:] Provided that [the] 40 investment advisers registered under these regulations as on the date of commencement of these regulations shall ensure that the individual investment adviser or principal officer of a non-individual investment adviser registered under these regulations and persons associated with investment advice [shall] 41 comply with [the] 42 qualification and experience requirements within [such time as may be specified by the Board] 43:
Provided further that the requirements at clauses (a) 44[*] shall not apply to such existing individual investment advisers as may be specified by the Board. 45[(2) An individual investment adviser or principal officer of a non-individual investment adviser, registered under these regulations, persons associated with investment advice, and in case of investment adviser being a partnership firm, the partners thereof who are engaged in providing investment advice, shall have at all times

“Persons associated with investment advice shall meet the following minimum qualifications, at all times – (i) a professional qualification as provided in clause (a) of sub-regulation (1) of regulation 7; and (ii) an experience of at least two years in activities relating to advice in financial products or securities or fund or asset or portfolio management:” 40 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Amendment) Regulations, 2023, w.e.f. 30-09-2023. 41 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Amendment) Regulations, 2023, w.e.f. 30-09-2023. 42 Substituted for the word “such” by the Securities and Exchange Board of India (Investment Advisers) (Amendment) Regulations, 2023, w.e.f. 30-09-2023. 43 Substituted for the words “three years” by the Securities and Exchange Board of India (Investment Advisers) (Amendment) Regulations, 2023, w.e.f. 30-09-2023. 44 Omitted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. Prior to its omission, the following words of proviso read as under:
“and (b)”
45 Substituted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. Prior to its substitution, sub-regulation (2) read as under; “(2) An individual investment adviser or principal officer of a non-individual investment adviser, registered under these regulations and persons associated with investment advice shall have, at all times a certification on financial planning or fund or asset or portfolio management or investment advisory services- (a)from NISM; or (b)from any other organization or institution including Financial Planning Standards Board of India or any recognized stock exchange in India provided such certification is accredited by NISM:
Provided that fresh certification must be obtained before expiry of the validity of the existing certification to ensure continuity in compliance with certification requirements:
Provided further that fresh certification before expiry of the validity of the existing certification shall not be obtained through a CPE program.”

relevant NISM certification as specified by the Board from time to time:
Provided that a fresh relevant NISM certification as specified by the Board from time to time shall be obtained before expiry of the validity of the existing certification to ensure continuity in compliance with certification requirements.] 46[Deposit.
8. (1) An investment adviser shall maintain a deposit of such sum, as specified by the
Board from time to time.
(2) 47[The deposit shall be maintained in such a form or manner as may be specified by the Board.] 48[(3) Such deposit shall be marked as lien in favour of a body or body corporate recognised by the Board for the purpose of administration and supervision of investment advisers in accordance with regulation 14 of these regulations:
Provided that the deposit shall be available for utilization in case the investment adviser fails to pay the dues emanating out of arbitration and conciliation proceedings, if any, under the Online Dispute Resolution Mechanism or such other mechanism as may be specified by the Board.] Grant of certificate of registration.
9. The Board on being satisfied that the applicant complies with the requirements
specified in regulation 6 shall send intimation to the applicant and on receipt of the

46 Substituted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. Prior to its substitution, regulation 8 read as under; “Networth.8. (1) Investment advisers who are non-individuals shall have a net worth of not less than fifty lakh rupees. Explanation. —For the purposes of this regulation, "networth" means the aggregate value of paid up share capital plus free reserves (excluding reserves created out of revaluation) reduced by the aggregate value ofaccumulated losses, deferred expenditure not written off, including miscellaneous expenses not written off, and networth requirement for other services offered by the advisers in accordance with the applicable rules and regulations. (2) Investment advisers who are individuals shall have net tangible assets of value not less than five lakh rupees:
Provided that existing investment advisers shall comply with the networth requirement within three years from the date of commencement of the SEBI (Investment Advisers) (Amendment) Regulations, 2020.” 47 Substituted by the Securities and Exchange Board of India (Investment Advisers) (Amendment) Regulations, 2025 w.e.f. 07-08-2025. Prior to substitution, sub-regulation (2) read as under:
“The deposit shall be maintained with a scheduled bank marked as lien in favor of a body or body corporate recognized by the Board for the purpose of administration and supervision of investment advisers in accordance with regulation 14 of these regulations:
Provided that such deposit shall be available for utilization in case the investment adviser fails to pay dues emanating out of arbitration and conciliation proceedings, if any, under the Online Dispute Resolution Mechanism or such other mechanism as may be specified by the Board.” 48 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Amendment) Regulations, 2025 w.e.f. 07-08-2025.

payment of registration 49[*] fees as specified in Second Schedule, grant certificate of registration in Form B 50[to an investment adviser or in Form C to a part-time investment adviser, as the case may be,] under First Schedule, subject to such terms and conditions as the Board may deem fit and appropriate51[:] 52[Provided that an individual or partnership firm registered as a research analyst may be granted certificate of registration as an investment adviser, subject to such terms and conditions as the Board may deem fit and appropriate.] Period of validity of certificate.
10. The certificate of registration granted under regulation 9 shall be valid 53[till it is
suspended or cancelled by the Board.]
Renewal of certificate.
11. 54[The investment adviser which has already been granted certificate of registration by
the Board, prior to the commencement of the Securities and Exchange Board of India (Change in Conditions of Registration of Certain Intermediaries) (Amendment) Regulations, 2016 shall be deemed to have been granted a certificate of registration, in terms of sub-regulation (1).] Procedure where registration is refused.
12. (1) After considering an application made under regulation 3, if the Board is of the
opinion that a certificate should not be granted to the applicant, it may reject the application after giving the applicant a reasonable opportunity of being heard.

49 The words “/renewal” was omitted by the Securities and Exchange Board of India (Change in Conditions of Registration of Certain Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016. 50 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. 51 Substituted for the symbol “.” by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. 52 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. 53 Substituted for the words “for a period of five years from the date of its issue.” by the Securities and Exchange Board of India (Change in Conditions of Registration of Certain Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016. 54 Substituted by the Securities and Exchange Board of India (Change in Conditions of Registration of Certain Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016. Prior to substitution regulation 11 read as under:
“11. (1) Three months before the expiry of the period of validity of the certificate, the investment adviser may, if he so desires, make an application in Form A for grant of renewal of certificate of registration. (2)The application for renewal under sub-regulation (1) shall be dealt with in the same manner as if it were an application made under sub-regulation (2) of regulation 3 for grant of certificate.”

(2) The decision of the Board to reject the application shall be communicated to the applicant within thirty days of such decision. (3) Where an application for a certificate is rejected by the Board, the applicant shall forthwith cease to act as an investment adviser:
Provided that nothing contained in this regulation shall affect the liability of the applicant towards its existing clients under law. Conditions of certificate.
13. The certificate granted under regulation 9 shall, inter alia, be subject to the following
conditions:-
(a) the investment adviser shall abide by the provisions of the Act and these regulations; (b) the investment adviser shall forthwith inform the Board in writing, if any information or particulars previously submitted to the Board are found to be false or misleading in any material particular or if there is any material change in the information already submitted; (c) the investment adviser, not being an individual, shall include the words ‘investment adviser’ in its name:
Provided that if the investment advisory service is being provided by a separately identifiable department or division or a subsidiary, then such separately identifiable department or division or subsidiary shall include the words ‘investment adviser’ in its name; (d) individuals registered as investment advisers shall use the term ‘investment adviser’ in all their correspondences with their clients55[:] 56[Provided that part-time investment adviser registered under these regulations shall use the term ‘part-time investment adviser’ in all their correspondences with their clients.] 57[(e) individuals registered as investment advisers whose number of clients exceed three hundred at any point of time or the fee collected during the financial year exceeds three crore rupees, whichever is earlier shall –

55 Substituted for the symbol “;” by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. 56 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. 57 Substituted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. Prior to its substitution, clause (e) read as under; “(e) individuals registered as investment advisers whose number of clients exceed one hundred and fifty in total, shall apply for registration as non-individual investment adviser within such time as may be specified by the Board.”

(i) apply for grant of in-principle registration as non-individual investment adviser; (ii) the in-principle registration shall be valid for a period of three months to assist in the transition from registration as individual investment adviser to non-individual investment adviser; (iii) on completion of the transition period or upon grant of certificate of registration as non-individual investment adviser, whichever is earlier, the investment adviser shall surrender his registration as individual investment adviser.] 58[(f) the number of clients of a part-time investment adviser shall not exceed seventy￾five in total at any point of time.] 59[Recognition of body or body corporate for administration and supervision of investment advisers.
14. (1) The Board may recognize a body or body corporate for the purpose of
administration and supervision of investment advisers to such extent and on such terms and conditions as may be specified by the Board. (2) The Board may specify that no person shall act as an investment adviser unless such a person is enlisted with the recognized body or body corporate and in such an event, the provisions of these regulations and the specified provisions of the bye-laws or articles of such a body or body corporate shall apply to the investment adviser.]
CHAPTER III
GENERAL OBLIGATIONS AND RESPONSIBILITIES
General responsibility.
15. (1) An investment adviser shall act in a fiduciary capacity towards its clients and
shall disclose all conflicts of interests as and when they arise.

58 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. 59 Substituted by the Securities and Exchange Board of India (Investment Advisers) (Amendment) Regulations, 2024, w.e.f. 25-07-2024. Prior to substitution, it read as under:
“Recognition of body or body corporate for regulation of investment advisers. 14.(1) The Board may recognize any body or body corporate for the purpose of regulating investment advisers. (2) The Board may, at the time of recognition of such body or body corporate, delegate administration and supervision of investment advisers to such body or body corporate on such terms and conditions as may be specified by the Board. (3) The Board may specify that no person shall act as an investment adviser unless he is a member of a recognized body or body corporate and in such event, provisions of these regulations and byelaws or articles of such body or body corporate shall apply mutatis mutandis to such investment advisers.”

(2) An investment adviser shall not receive any consideration by way of remuneration or compensation or in any other form from any person other than the client being advised, in respect of the underlying products or securities for which advice is provided. (3) An investment adviser shall maintain an arms-length relationship between its activities as an investment adviser and other activities. (4) An investment adviser which is also engaged in activities other than investment advisory services shall ensure that its investment advisory services are clearly segregated from all its other activities, in the manner as prescribed hereunder. (5) An investment adviser shall ensure that in case of any conflict of interest of the investment advisory activities with other activities, such conflict of interest shall be disclosed to the client. (6) An investment adviser shall not divulge any confidential information about its client, which has come to its knowledge, without taking prior permission of its clients, except where such disclosures are required to be made in compliance with any law for the time being in force. (7) An investment advisor shall not enter into transactions on its own account which is contrary to its advice given to clients for a period of fifteen days from the day of such advice. Provided that during the period of such fifteen days, if the investment adviser is of the opinion that the situation has changed, then it may enter into such a transaction on its own account after giving such revised assessment to the client at least 24 hours in advance of entering into such transaction. (8) An investment advisor shall follow Know Your Client procedure as specified by the Board from time to time. (9) An investment adviser shall abide by Code of Conduct as specified in Third
Schedule.
(10) An investment adviser shall not act on its own account, knowingly to sell securities or investment products to or purchase securities or investment product from a client. (11) In case of change in control of the investment adviser, prior approval from the Board shall be taken. (12) Investment advisers shall furnish to the Board information and reports as may be specified by the Board from time to time.

60[(13) It shall be the responsibility of the investment adviser to ensure compliance with the certification and qualification requirements as specified under Regulation 7 at all times.] 61[(14) An investment adviser who uses Artificial Intelligence tools, irrespective of the scale and scenario of adoption of such tools, for servicing its clients shall be solely responsible for the security, confidentiality, integrity of the client data, use of any other information or data to arrive at investment advice, investment advice based on output of Artificial Intelligence tools and compliance with any law for the time being in force.] 62[(15) An investment adviser shall ensure compliance with the Investor Charter specified by the Board from time to time.] 63[Fees. 15A. Investment Adviser shall be entitled to charge fees for providing investment advice from a client 64[, including an accredited investor] in the manner as specified by the Board.] Risk profiling.
16. Investment adviser shall ensure that,-
(a) it obtains from the client, such information as is necessary for the purpose of giving investment advice, including the following:- (i) age; (ii) investment objectives including time for which they wish to stay invested, the purposes of the investment ; (iii) income details; (iv) existing investments/ assets; (v) risk appetite/ tolerance; (vi) liability/borrowing details. (b) it has a process for assessing the risk a client is willing and able to take, including:
(i) assessing a client’s capacity for absorbing loss;

60 Substituted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. Prior to its substitution, sub-regulation (13) read as under; “(13) It shall be the responsibility of the Investment Adviser to ensure that its representatives and partners, as applicable, comply with the certification and qualification requirements under Regulation 7 at all times.” 61 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. 62 Inserted by the Securities and Exchange Board of India (Investor Charter) (Amendment) Regulations, 2025 w.e.f. 10-02-2025. 63 Inserted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. 64 Inserted by the SEBI (Investment Advisers) (Third Amendment) Regulations, 2021, w.e.f. 03-08-2021.

(ii) identifying whether client is unwilling or unable to accept the risk of loss of capital; (iii) appropriately interpreting client responses to questions and not attributing inappropriate weight to certain answers. (c) where tools are used for risk profiling, it should be ensured that the tools are fit for the purpose and any limitations are identified and mitigated; (d) any questions or description in any questionnaires used to establish the risk a client is willing and able to take are fair, clear and not misleading, and should ensure that:
(i) questionnaire is not vague or use double negatives or in a complex language that the client may not understand; (ii) questionnaire is not structured in a way that it contains leading questions. (e) risk profile of the client is communicated to the client after risk assessment is done; (f) information provided by clients and their risk assessment is updated periodically. Suitability.
17. Investment adviser shall ensure that,-
(a) All investments on which investment advice is provided is appropriate to the risk profile of the client; (b) It has a documented process for selecting investments based on client’s investment objectives and financial situation; (c) It understands the nature and risks of products or assets selected for clients; (d) It has a reasonable basis for believing that a recommendation or transaction entered into:
(i) meets the client’s investment objectives;
(ii) is such that the client is able to bear any related investment risks consistent with its investment objectives and risk tolerance; (iii) is such that the client has the necessary experience and knowledge to understand the risks involved in the transaction. (e) Whenever a recommendation is given to a client to purchase of a particular complex financial product, such recommendation or advice is based upon a reasonable assessment that the structure and risk reward profile of financial product is consistent with clients experience, knowledge, investment objectives, risk appetite and capacity for absorbing loss. Disclosures to clients.
18. (1) An investment adviser shall disclose to a prospective client, all material
information about itself including its business, disciplinary history, the terms and conditions on which it offers advisory services, affiliations with other intermediaries

and such other information as is necessary to take an informed decision on whether or not to avail its services. 65[*] (4) An investment adviser shall disclose to the client its holding or position, if any, in the financial products or securities which are subject matter of advice. (5) An investment adviser shall disclose to the client any actual or potential conflicts of interest arising from any connection to or association with any issuer of products/ securities, including any material information or facts that might compromise its objectivity or independence in the carrying on of investment advisory services. (6) An investment adviser shall, while making an investment advice, make adequate disclosure to the client of all material facts relating to the key features of the products or securities, particularly, performance track record. (7) An investment adviser shall draw the client’s attention to the warnings, disclaimers in documents, advertising materials relating to an investment product which it is recommending to the client. 66[(8) An investment adviser who provides advisory services in respect of products or services which are outside the purview of the Board, shall disclose to the client that such products or services and his advisory services in respect of such products or services are outside the regulatory purview of the Board and no recourse from the Board shall be available to such clients for any grievance arising therefrom. (9) An investment adviser shall disclose to the client the extent of use of Artificial Intelligence tools in providing investment advice.] Maintenance of records.
19. (1) An investment adviser shall maintain the following records,-
(a) Know Your Client records of the client;
(b) Risk profiling and risk assessment of the client; (c) Suitability assessment of the advice being provided;

65 Omitted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. Prior to its omission, sub-regulation (2) and (3) read as under; “(2) An investment adviser shall disclose to its client, any consideration by way of remuneration or compensation or in any other form whatsoever, received or receivable by it or any of its associates or subsidiaries for any distribution or execution services in respect of the products or securities for which the investment advice is provided to the client. (3) An investment adviser shall, before recommending the services of a stock broker or other intermediary to a client, disclose any consideration by way of remuneration or compensation or in any other form whatsoever, if any, received or receivable by the investment adviser, if the client desires to avail the services of such intermediary.” 66 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024.

67[(d) Copies of agreements with clients, incorporating the terms and conditions as may be specified by the Board;] (e) Investment advice provided, whether written or oral; (f) Rationale for arriving at investment advice, duly signed and dated; (g) A register or record containing list of the clients 68[along with PAN], the date of advice, nature of the advice, the 69[details of] products/securities in which advice was rendered and 70[fee/consideration, if any charged/received for such advice] 71[;] 72[(h) Records of communication including emails, call recordings etc. with all clients including prospective clients, as may be specified.] (2) All records shall be maintained either in physical or electronic form and preserved for a minimum period of five years:
Provided that where records are required to be duly signed and are maintained in electronic form, such records shall be digitally signed. (3) An investment adviser shall conduct yearly audit in respect of compliance with these regulations from a member of Institute of Chartered Accountants of India or Institute of Company Secretaries of India 73[or Institute of Cost Accountants of India] 74[and submit a report of the same as may be specified by the Board]. 75[Website.

67 Substituted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. Prior to its substitution, clause (d) read as under; “(d)Copies of agreements with clients, if any;” 68 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. 69 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. 70 Substituted for the words and symbol “fee, if any charged for such advice” by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. 71 Substituted for the symbol “.” by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. 72 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. 73 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. 74 Inserted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. 75 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024.

19A. An investment adviser shall maintain a functional website containing such details as may be specified by the Board.] 76[Appointment of compliance officer.
20. (1) A non-individual investment adviser shall appoint either:
(i) a compliance officer; or
(ii) an independent professional who is a member of Institute of Chartered Accountants of India or Institute of Company Secretaries of India or Institute of Cost Accountants of India or member of any other professional body as may be specified by the Board, provided such a professional holds a relevant certification from NISM, as may be specified by the Board; who shall be responsible for monitoring the compliance by the investment adviser in respect of the requirements of the Act, regulations, notifications, guidelines, instructions issued by the Board. (2) Where independent professional referred in sub-regulation (1) of this regulation is appointed for monitoring compliance, the principal officer shall submit an undertaking to the Board or the body or body corporate recognized under regulation 14 of these regulations to the effect that the principal officer shall be responsible for monitoring the compliance in respect of the requirements of the Act, regulations, notifications, guidelines, instructions issued by the Board.] Redressal of client grievances.
21. (1) 77[The Investment Adviser shall redress investor grievances promptly but not later
than twenty-one calendar days from the date of receipt of the grievance and in such manner as may be specified by the Board.] (2) An investment adviser shall have adequate procedure for expeditious grievance redressal. (3) Client grievances pertaining to financial products in which investments have been made based on investment advice, shall fall within the purview of the regulator of such financial product.

76 Substituted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. Prior to its substitution, regulation 20 read as under; “Appointment of compliance officer. 20.An investment adviser which is a body corporate or a partnership firm shall appoint a compliance officer who shall be responsible for monitoring the compliance by the investment adviser in respect of the requirements of the Act, regulations, notifications, guidelines, instructions issued by the Board.” 77 Substituted by the Securities and Exchange Board of India (Facilitation of Grievance Redressal Mechanism) (Amendment) Regulations, 2023 w.e.f. 18-08-2023. Prior to substitution, it reads as, “An investment adviser shall redress client grievances promptly.”

(4) Any dispute between the investment adviser and his client 78[shall be submitted to a dispute resolution mechanism that includes mediation and/or conciliation and/or arbitration in accordance with the procedure specified by the Board] or through Ombudsman authorized or appointed for the purpose by any regulatory authority, as applicable. 79[Client level segregation of advisory and distribution activities.
22. (1) An individual investment adviser shall not provide distribution services.
(2) The family of an individual investment adviser shall not provide distribution services to the client advised by the individual investment adviser and no individual investment adviser shall provide advice to a client who is receiving distribution services from other family members. (3) A non-individual investment adviser shall have client level segregation at group level for investment advisory and distribution services. Explanation. — (i) The same client cannot be offered both advisory and distribution services within the group of the non-individual entity. (ii) A client can either be an advisory client where no distributor consideration is received at the group level or distribution services client where no advisory fee is collected from the client at the group level. (iii) ‘Group’ for this purpose shall mean an entity which is a holding, subsidiary, associate, subsidiary of a holding company to which it is also a subsidiary or an investing company or the venturer of the company as per the provisions of Companies Act, 2013 for non-individual investment adviser which is a company under the said Act and in any other case, an entity which has a controlling interest or is subject to the controlling interest of a non-individual investment adviser. (4) Non-individual investment adviser shall maintain an arm’s length relationship

78 Substituted for the words “may be resolved through arbitration” by the Securities and Exchange Board of India (Alternative Dispute Resolution Mechanism) (Amendment) Regulations, 2023, w.e.f., 04-07-2023. 79 Substituted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. Prior to its substitution, regulation 22 read as under; “Segregation of execution services. 22 Investment advisers which are banks, NBFCs and body corporate providing distribution or execution services to their clients shall keep their investment advisory services segregated from such activities:
Provided that such distribution or execution services can only be offered subject to the following:
(a) The client shall not be under any obligation to avail the distribution or execution services offered by the investment adviser. (b) The investment adviser shall maintain arms length relationship between its activities as investment adviser and distribution or execution services. (c) All fees and charges paid to distribution or execution service providers by the client shall be paid directly to the service providers and not through the investment adviser.”

between its activities as investment adviser and distributor by providing advisory services through a separately identifiable department or division. (5) Compliance and monitoring process for client segregation at group or family level shall be in accordance with the guidelines specified by the Board.] 80[Implementation of advice or execution. 22A. (1) Investment adviser may provide implementation services to the advisory clients in securities market:
Provided that investment advisers shall ensure that no consideration including any commission or referral fees, whether embedded or indirect or otherwise, by whatever name called is received; directly or indirectly, at investment adviser’s group or family level for the said service, as the case maybe. (2) Investment adviser shall provide implementation services to its advisory clients only through direct schemes/products in the securities market. (3) Investment adviser or group or family of investment adviser shall not charge any implementation fees from the client. (4) The client shall not be under any obligation to avail implementation services offered by the investment adviser.]
CHAPTER IV
INSPECTION
Board’s right to inspect.
23. The Board may suo motu or upon receipt of information or complaint appoint one or
more persons as inspecting authority to undertake inspection of the books of accounts, records and documents relating to investment advisers for any of the following reasons, namely: - (a) to ensure that the books of account, records and documents are being maintained by the investment adviser in the manner specified in these regulations; (b) to inspect into complaints received from clients or any other person, on any matter having a bearing on the activities of the investment adviser; (c) to ascertain whether the provisions of the Act and these regulations are being complied with by the investment adviser; (d) to inspect into the affairs of a investment adviser, in the interest of the securities market or in the interest of investors. Notice before inspection.

80 Inserted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020.

24. (1) Before ordering an inspection under regulation 23, the Board shall give not less
    than ten days notice to the investment adviser.
    (2) Notwithstanding anything contained in sub-regulation (1), where the Board is satisfied that in the interest of the investors no such notice should be given, it may by an order in writing direct that the inspection of the affairs of the investment adviser be taken up without such notice. (3) During the course of an inspection, the investment adviser against whom the inspection is being carried out shall be bound to discharge its obligations as provided in regulation 25. Obligation of investment adviser on inspection.
25. (1) It shall be the duty of every investment adviser in respect of whom an inspection
    has been ordered under the regulation 23 and any other associate person who is in possession of relevant information pertaining to conduct and affairs of such investment adviser, including 81[partners, directors, principal officer and persons associated with investment advice], if any, to produce to the inspecting authority such books, accounts and other documents in his custody or control and furnish him with such statements and information as the inspecting authority may require for the purposes of inspection. (2) It shall be the duty of every investment adviser and any other associate person who is in possession of relevant information pertaining to conduct and affairs of the investment adviser to give to the inspecting authority all such assistance and shall extend all such co-operation as may be required in connection with the inspection and shall furnish such information as sought by the inspecting authority in connection with the inspection. (3) The inspecting authority shall, for the purposes of inspection, have power to examine on oath and record the statement of any employees, directors, partners 82[, principal officer and persons associated with investment advice] or person responsible for or connected with the activities of investment adviser or any other associate person having relevant information pertaining to such investment adviser. (4) The inspecting authority shall, for the purposes of inspection, have power to obtain authenticated copies of documents, books, accounts of investment adviser, from any person having control or custody of such documents, books or accounts. Submission of report to the Board.
26. The inspecting authority shall, as soon as possible, on completion of the inspection
    submit an inspection report to the Board:

81 Substituted for the words “representative of investment adviser” by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. 82 Inserted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020.

Provided that if directed to do so by the Board, the inspecting authority may submit an interim report. Action on the inspection report.
27. The Board may after consideration of the inspection report and after giving reasonable
opportunity of hearing to the investment advisers or its authorized representatives, issue such directions as it deems fit in the interest of securities market or the investors including,- (a) requiring an investment adviser 83[, partners, directors, principal officer and persons associated with investment advice] not to provide investment advice for a particular period; (b) requiring the investment adviser to refund any money collected as fees, charges or commissions or otherwise to the concerned clients along with the requisite interest. (c) prohibiting the investment adviser 84[, partners, directors, principal officer and persons associated with investment advice] from operating in the capital market or accessing the capital market for a specified period.
CHAPTER V
PROCEDURE FOR ACTION IN CASE OF DEFAULT
Liability for action in case of default.
28. An investment adviser who -
(a) contravenes any of the provisions of the Act or any regulations or circulars issued thereunder; (b) fails to furnish any information relating to its activity as an investment adviser as required by the Board; (c) furnishes to the Board information which is false or misleading in any material particular; (d) does not submit periodic returns or reports as required by the Board; (e) does not co-operate in any enquiry, inspection or investigation conducted by the Board; (f) fails to resolve the complaints of investors or fails to give a satisfactory reply to the Board in this behalf,

83 Inserted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. 84 ibid.

shall be dealt with in the manner provided under the Securities and Exchange Board of India (Intermediaries) Regulations, 2008. 85[CHAPTER V-A POWER TO RELAX STRICT ENFORCEMENT OF THE REGULATIONS Exemption from enforcement of the regulations in special cases. 28A. (1) The Board may, exempt any person or class of persons from the operation of all or any of the provisions of these regulations for a period as may be specified but not exceeding twelve months, for furthering innovation 86[*] relating to testing new products, processes, services, business models, etc. in live environment of regulatory sandbox in the securities markets. (2) Any exemption granted by the Board under sub-regulation (1) shall be subject to the applicant satisfying such conditions as may be specified by the Board including conditions to be complied with on a continuous basis. Explanation. — For the purposes of these regulations, "regulatory sandbox" means a live testing environment where new products, processes, services, business models, etc. may be deployed on a limited set of eligible customers for a specified period of time, for furthering innovation in the securities market, subject to such conditions as may be specified by the Board.]
CHAPTER VI
MISCELLANEOUS
Power of the Board to issue clarifications etc.
29. In order to remove any difficulties in the application or interpretation of these
regulations, the Board may issue clarifications and guidelines in the form of circulars. Power of the Board over body or body corporate recognized under regulation 14.
30. The Board reserves the right to alter, modify and overrule any decision, action taken or
penalties imposed by the body or body corporate recognized under regulation 14.

85 Inserted by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2020, w.e.f. 17-04-2020. 86 The words “in technological aspects” omitted by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2021, w.e.f. 03-08-2021.

87[Savings
30A. Prior to the commencement of the Securities and Exchange Board of India (Investment Advisers) (Amendment) Regulations, 2024, any action taken or purported to have been taken or any action that may be taken against any person in relation to the membership of the body or body corporate recognised under regulation 14 shall be deemed to have been done or taken or may be taken under the corresponding provisions of these regulations.]

87 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Amendment) Regulations, 2024, w.e.f. 25-07-2024.

FIRST SCHEDULE
FORM A
Securities and Exchange Board of India
(Investment Advisers) Regulations, 2013
88[See Regulation 3]
89[Application for Grant of Certificate of Registration] Securities and Exchange Board of India SEBI Bhavan, C4-A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai 400051 - India INSTRUCTIONS

1. This form is meant for use by the applicant for grant of certificate of registration as an
   investment adviser.
2. The applicant should complete this form, and submit it, along with all supporting
   documents to the Board at its head office at Mumbai.
3. This application form should be filled in accordance with these regulations.
4. The application shall be considered by the Board provided it is complete in all respects.
5. All answers must be legible and all the pages must be numbered with signature/ stamp on
   each page of the form.
6. Information which needs to be supplied in more detail may be given on separate sheets
   which should be attached to the application form and appropriately numbered.
7. The application must be signed.
8. The application must be accompanied by an application fee as specified in the Second
   Schedule to these regulations.
9. GENERAL INFORMATION

88 Substituted for the words “See Regulations 3 and 11” by the Securities and Exchange Board of India (Change In Conditions Of Registration Of Certain Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016. 89 Substituted for the words “Application for Grant of Certificate of Registration/Renewal as investment adviser” by the Securities and Exchange Board of India (Change In Conditions Of Registration Of Certain Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016.

(a) Name, address of the registered office, address for correspondence and principal place of business, telephone number(s), fax number(s), e-mail address of the applicant. 90[(b)]. (c) Name, direct line number, mobile number and e-mail of the contact person(s) 91[and principal officer]. (d) Legal structure of applicant - Whether the applicant is an individual 92[ or non￾individual]. 93[(da) Indicate whether the application for the grant of certificate of registration is for
part-time investment adviser;
(db) Whether the applicant is engaged in any other business activity or employment? If so, details of such other business activity or employment.] (e) Whether the applicant is a bank /NBFC. (f) Date and place of incorporation/ establishment, if any. If the applicant is incorporated outside India, details of such incorporation. (g) Whether the applicant is engaged in investment advisory services prior to making application under these regulations. (h) Whether the applicant is registered with SEBI, RBI, IRDA or PFRDA in any capacity. If so, details of such registration. (i) Write-up on the activities of the applicant. 94[]
2. DETAILS OF APPLICANT (Provide details of only the section applicable to you)
I. In case applicant is an individual:

90 Omitted by the by the Securities and Exchange Board of India (Change in Conditions of Registration of Certain Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016. Prior to omission sub-para(b) read as under:
“(b) Whether application is for registration/ renewal. Provide registration number if the application is for renewal of certificate.” 91 Inserted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. 92Substituted for the words and symbol “, body corporate (including company), partnership firm or limited liability partnership” by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. 93 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. 94 Omitted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. Prior to its omission, the following words of clause (i) read as under; “For renewal application, provide details of existing investment advisory services including number and type of clients, assets under advice, revenue, profitability, products/ securities on which investment advice was provided, etc.”

95[1. Whether the applicant and persons associated with investment advice comply with qualification and certification requirements under regulation 7 and applicant has submitted a declaration with respect to the same. (Provide self-certified copies of supporting documents).]
2. Copy of certification obtained in accordance with regulation 7(2).
96[]
97[3. Number of persons associated with investment advice, if any, who shall render investment advice under these regulations on behalf of the applicant. Provide documents as mentioned in points 1 to 2 above for such persons associated with investment advice.]
4. Enclose identity proof and address proof of the applicant 98[and persons
associated with investment advice].
5. Details of ownership/directorship of the applicant in any companies or
partnership interest in any firm or limited liability partnership.
6. Copy of Income Tax Return/ Copy of Form 16 for the last 3 years.
7. Copy of assets and liabilities statement 99[]
100[8. Where the applicant is employed and has applied for registration as a
part-time investment adviser, the applicant shall enclose a no objection

95 Substituted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. Prior to its substitution, clause 1. read as under; “Whether the applicant has:
a. A professional qualification or post-graduate degree or post graduate diploma in finance, accountancy, business management, commerce, economics, capital market, banking, insurance or actuarial science from a university or an institution recognized by the Central Government or any State Government or a recognised foreign university or institution or association; or b.A graduate in any discipline with an experience of at least five years in activities relating to advice in financial products or securities or fund or asset or portfolio management. (Provide self certified copies of supporting documents).” 96 Omitted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. Prior to its omission, the following words of clause (2) read as under; “If the applicant is an existing investment adviser applying for fresh registration, then provide a declaration stating that it shall obtain such certification within two years from the date of commencement of these regulations and submit a copy of the certification to the Board within 15 days of receipt of such certification.” 97 Substituted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. Prior to its substitution, clause 3 read as under; “3. Number of employees and agents of the applicant, if any, who shall render investment advice under these regulations on behalf of the applicant. Provide documents as mentioned in points (1) to (2) above for such employees/ agents.” 98 Inserted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. 99 Omitted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. Prior to its omission, the following words of clause 7 read as under; “and certification of net tangible assets certified by a chartered accountant (not more than six months old at the time of filing of application). Please note that membership number of the Chartered accountant must be included in the certificate,” 100 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024.

certificate from the employer. In case of change in employment, the applicant shall provide no objection certificate from the new employer.]
II. In case applicant is a company:

1. Shareholding pattern and profile of the directors (Enclose identity proof and
   address proof of the directors).
2. Number of 101[persons associated with investment advice] who render/
   propose to render investment advice under these regulations on behalf of the applicant. 102[3. Declaration by the applicant that its principal officer and persons associated with investment advice currently comply with the certification, qualification and experience requirements under regulation 7.]
3. Declaration by the applicant that it shall ensure that its 103[principal officer
   and persons associated with investment advice] comply with the certification and qualification requirements under Regulation 7 at all times.
4. List of associated companies registered with SEBI, RBI, IRDA or PFRDA
   along with the registration number.
5. If applicant is a bank or NBFC, then copy of approval from RBI for
   undertaking investment advisory services.
6. Net worth 104[details].
   105[8. Enclose identity proof and address proof of the applicant, principal officer and persons associated with investment advice.]
   III. In case applicant is a partnership firm or a limited liability partnership:

101 Substituted for the words “employees and agents of the applicant (hereinafter referred to as ‘representatives’)” by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. 102 Substituted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. Prior to its substitution, clause 3 read as under; “3. Declaration by the applicant that its representatives currently comply with the certification and qualification requirements under regulation 7. (If the applicant is an existing investment adviser applying for fresh registration, then provide a declaration stating that the applicant shall ensure that all its representatives obtain such certification within two years from the date of commencement of these regulations and after all its representatives obtain the certification, a declaration to that effect shall be submitted to SEBI.)” 103 Substituted for the word “representatives” by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. 104 Substituted for the words and symbols “certificate by a chartered accountant, not more than six months old. Please note that membership number of the chartered accountant must be included in the certificate” by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. 105 Inserted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020.

1. Names and Beneficial ownership pattern of the partners 106[, principal
   officer and persons associated with investment advice] engaged/proposed to engage in investment advice (Enclose identity proof and address proof of the partners 107[, principal officer and persons associated with investment advice]). 108[2. Whether the aforesaid principal officer and persons associated with investment advice comply with certification and qualification requirements under regulation 7 and applicant has submitted a declaration with respect to the same. (Provide self-certified copies of supporting documents).] 109[3. Copy of certification obtained by the aforesaid principal officer and persons associated with investment advice in accordance with regulation 7(2).]
2. Declaration that the aforesaid 110[principal officer and persons associated
   with investment advice] shall obtain fresh certification before expiry of the validity of the existing certification to ensure continuity in compliance with certification requirements.
3. Copy of assets and liabilities statement 111[*].

106 ibid.
107 ibid.
108Substituted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. Prior to its substitution, clause 2. read as under; “2.Whether the aforesaid partners have:
a. A professional qualification or post-graduate degree or post graduate diploma in finance, accountancy, business management, commerce, economics, capital market, banking, insurance or actuarial science from a university or an institution recognized by the Central Government or any State Government or a recognised foreign university or institution or association; or b. A graduate in any discipline with an experience of at least five years in activities relating to advice in financial products or securities or fund or asset or portfolio management. (Provide self certified copies of supporting documents).” 109 Substituted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. Prior to its substitution, clause 3. read as under; “3.Copy of certification obtained by the aforesaid partners in accordance with regulation 7(2). (If the applicant is an existing investment adviser applying for fresh registration, then provide a declaration stating that all the partners engaged in investment advice shall obtain such certification within two years from the date of commencement of these regulations and after all such partners obtain the certification, a declaration to that effect shall be submitted to SEBI.)” 110 Substituted for the word “partner” by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. 111 Omitted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024. Prior to its omission, the following words of clause 5 read as under; “and certification of networth of the partnership firm certified by a chartered accountant (not more than six months old at the time of filing of application). Please note that membership number of the chartered accountant must be included in the certificate.”

IV. In case applicant is a body corporate (other than company or limited liability
partnership):

1. Shareholding pattern and profile of the directors 112[, principal officer and
   persons associated with investment advice] (Enclose identity proof and address proof of the directors 113[, principal officer and persons associated with investment advice]).
2. Whether the applicant is set up or established under the laws of the Central
   or State Legislature and whether the applicant is permitted to carry on of the activity of an investment adviser (Enclose relevant extract of the relevant Statute/Act).
3. Number of 114[principal officer and persons associated with investment
   advice] who render/ propose to render investment advice under these regulations on behalf of the applicant.
4. 115[Declaration by the applicant that its principal officer and persons
   associated with investment advice currently comply with the certification and qualification requirements under regulation 7.]
5. Declaration by the applicant that it shall ensure that its 116[principal officer
   and persons associated with investment advice] comply with the certification and qualification requirements under regulation 7 at all times.
6. Net worth 117[details].
7. BUSINESS PLAN
8. Proposed business plan & means of achieving the same.
9. The type of products/ securities on which investment advice is proposed to
   be rendered.

112 Inserted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. 113 ibid. 114 Substituted for the words “employees and agents of the applicant (hereinafter referred to as ‘representatives’)” by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. 115Substituted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. Prior to its substitution, clause 4 read as under; “4. Declaration by the applicant that its representatives currently comply with the certification and qualification requirements under regulation 7. (If the applicant is an existing investment adviser applying for fresh registration, then provide a declaration stating that the applicant shall ensure that all its representatives obtain such certification within two years from the date of commencement of these regulations and after all its representatives obtain the certification, a declaration to that effect shall be submitted to SEBI.)” 116 Substituted for the words “representatives” by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. 117 Substituted for the words and symbols “certificate by a chartered accountant, not more than six months old. Please note that membership number of the chartered accountant must be included in the certificate” by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024.

3. Process for risk profiling of the client and for assessing suitability of
   advice.
4. DETAILS OF INFRASTRUCTURE
5. Details of office space, office equipment, furniture and fixtures,
   communication facilities, research capacity, research software for undertaking investment advisory services.
6. Declaration that the applicant has the necessary infrastructure to effectively
   discharge the activities of an investment adviser.
   118[5. IMPLEMENTATION OF ADVICE OR EXECUTION SERVICES.
7. Provide a declaration that no consideration including any commission or
   referral fees whether embedded or indirect or otherwise by whatever name called shall be received directly or indirectly at Investment Adviser’s group or family level for the said service, as the case maybe.
8. If the applicant is a non-individual, whether the applicant proposes to offer
   distribution services.]
9. OTHER INFORMATION/DECLARATIONS/ REGULATORY ACTIONS
   (a)Details of all settled and pending disputes in the last 5 years.
   (b)Whether any previous application for grant of certificate made by any person directly or indirectly connected with the applicant has been rejected by the Board; If yes, provide details of the same. (c)Whether any disciplinary action has been taken by the Board or any other regulatory authority against any person directly or indirectly connected with the applicant under the Act or the regulations made there under in the last 5 years. If yes, provide details of the action. (d)Whether the applicant/directors/promoters/ partners 119[, principal officer and persons associated with investment advice] have been indicted/involved in any economic offence in the last 5 years. If yes, provide details of the same. (e)A credit report/ score from CIBIL for the applicant.(For applicants other than financial institutions & banking companies) (f) Declaration that the applicant, its 120[directors, principal officer, persons associated with investment advice] and partners, if any, are fit and proper persons based on the criteria as specified in Schedule II of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008;

118 Substituted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. Prior to its substitution, item 5 read as under; “EXECUTION SERVICES

1. If the applicant is a body corporate, whether the applicant proposes to offer distribution or
   execution services to its clients.
2. If yes, provide a declaration that the services are being offered through a subsidiary/
   separately identifiable department or division.”
   119 Inserted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. 120 Substituted for the word “representatives” by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020.

(g)Declaration that the applicant shall not obtain any consideration by way of remuneration or compensation or any other form whatsoever, from any person other than the client being advised, in respect of the underlying products or securities for which advice is provided to the client. 121[(ga) In case of registration as part-time investment adviser, a declaration that it shall maintain arms-length relationship between its business activity as investment adviser and other business activity and shall ensure that its business activities as investment adviser are clearly segregated from its other business activity or employment.] (h)Any other information considered relevant to the nature of services to be rendered by the applicant.
7. DECLARATION STATEMENT
I/We hereby agree and declare that the information supplied in the application, including the attachment sheets, is complete and true. AND I/ we further agree that, I/we shall notify the Securities and Exchange Board of India immediately any change in the information provided in the application. I/ We further agree that I/ we shall comply with, and be bound by the Securities and Exchange Board of India Act, 1992, and the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013, guidelines/instructions as may be announced by the Securities and Exchange Board of India from time to time. I/ We further agree that as a condition of registration, I/ we shall abide by such operational instructions/directives as may be issued by the Securities and Exchange Board of India from time to time. For and on behalf of ____________________________________________________ (Name of the applicant) Authorized signatory/ Applicant (Signature) (Date and Place)

121 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024.

FORM B
Securities and Exchange Board of India
(Investment Adviser) Regulations, 2013
[See regulation 9]
Certificate of registration as investment adviser
I. In exercise of the powers conferred by sub-section (1) of section 12 of the Securities and
Exchange Board of India Act, 1992 (15 of 1992), read with the regulations made there under, the Board hereby grants a certificate of registration to _______________________________________________________________ as an investment adviser subject to the conditions specified in the Act and in the regulations made thereunder.
II. The Registration Number of the investment adviser is
IN/IA/_____________.
Date :
Place : MUMBAI
By Order
Sd/-
For and on behalf of
Securities and Exchange Board of India
122[FORM C
Securities and Exchange Board of India
(Investment Adviser) Regulations, 2013
[See regulation 9]
Certificate of registration as Part-Time Investment Adviser
I. In exercise of the powers conferred by sub-section (1) of section 12 of the Securities and Exchange
Board of India Act, 1992 (15 of 1992), read with the regulations made there under, the Board hereby grants a certificate of registration to ___________________as a part-time investment adviser subject to the conditions specified in the Act and in the regulations made thereunder.
II. The Registration Number of the part-time investment adviser is

122 Inserted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024.

IN/IA/_____________.
III. This certificate of registration shall be valid till it is suspended or cancelled by the Board
Date:
Place: MUMBAI
By Order
Sd/-
For and on behalf of
Securities and Exchange Board of India]

123[SECOND SCHEDULE
Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 [Regulation 9] FEES

1. Every applicant shall pay non-refundable application fees along with the
   application for grant 124[*] of certificate of registration as under:
   a. 125[For individuals and firms
   ₹ 2,000] b. 126[For Body Corporate including Limited Liability Partnerships] ₹ 10,000
2. 127[Every applicant shall pay registration fee at the time of grant of certificate by
   the Board as under:
   a. For individuals and firms ₹ 3,000

123 Substituted by the SEBI (Payment of Fees) (Amendment) Regulations, 2014, w.e.f 23.05.2014. Prior to its substitution, the Second Schedule read as under:

1. “Every applicant shall pay non-refundable application fees of five thousand rupees along with the
   application for grant or renewal of certificate of registration.
2. Applicants which are individuals and firms shall pay a sum of ten thousand rupees as registration/
   renewal fee at the time of grant or renewal of certificate by the Board.
3. A body corporate shall pay a sum of one lakh rupees as registration/ renewal fee at the time of grant or
   renewal of certificate by the Board.
4. The fee referred to in paragraph 1, 2 and 3 shall be paid by the applicant within fifteen days from the
   date of receipt of intimation from the Board by a demand draft in favor of 'Securities and Exchange Board of India' payable at Mumbai or at respective regional or local office.” 124 The words “or renewal” omitted by the Securities and Exchange Board of India (Change In Conditions Of Registration Of Certain Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016. 125 Substituted by the SEBI (Investment Advisers) (Amendment) Regulations, 2021, w.e.f. 01-04-2021. Prior to its substitution, sub-clause (a) read as under:
   “For individuals and firms ₹ 5,000”
   126 Substituted by the SEBI (Investment Advisers) (Amendment) Regulations, 2021, w.e.f. 01-04-2021. Prior to its substitution, sub-clause (b) read as under:
   “For Body Corporate including Limited Liability Partnerships ₹ 25,000” 127 Substituted by the SEBI (Investment Advisers) (Amendment) Regulations, 2021, w.e.f. 01-04-2021. Prior to its substitution, clause (2) read as under:
   “Every applicant shall pay registration fee at the time of grant or renewal of certificate by the Board as under:
   a. For individuals and firms ₹ 10,000 b. For Body Corporate including Limited Liability Partnerships ₹ 5,00,000”

b. For body Corporate including Limited Liability Partnerships ₹ 15,000]
3. 128[An investment adviser who has been granted a certificate of registration, to
keep its registration in force, shall pay fee 129[specified below] every five years, from the date of grant of certificate of registration or from the date of grant of certificate of registration granted prior to the commencement of the Securities and Exchange Board of India (Change in Conditions of Registration of Certain Intermediaries) (Amendment) Regulations, 2016, as the case may be, within three months before expiry of the period for which fee has been paid130[:]] 131[a. For individuals and firms ₹ 1,000 b. For Body Corporate including Limited Liability Partnerships ₹ 5,000] 132[4. The fee referred to in paragraph 2 shall be paid by the applicant within fifteen days from the date of receipt of intimation from the Board by way of direct credit into the bank account through NEFT/RTGS/IMPS or online payment using the SEBI Payment Gateway or any other mode as may be specified by the Board from time to time.] THIRD SCHEDULE Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 [See sub-regulation (9) of regulation 15] CODE OF CONDUCT FOR INVESTMENT ADVISER

128 Inserted by the by the Securities and Exchange Board of India (Change In Conditions Of Registration Of Certain Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016. 129 Substituted for the words “prescribed at paragraph 2 above” by the SEBI (Investment Advisers) (Amendment) Regulations, 2021, w.e.f. 01-04-2021. 130 Substituted for the symbol “.” by the SEBI (Investment Advisers) (Amendment) Regulations, 2021, w.e.f. 01-04-2021. 131 Inserted by the SEBI (Investment Advisers) (Amendment) Regulations, 2021, w.e.f. 01-04-2021. 132 Substituted by the Securities and Exchange Board of India (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2023 w.e.f 01-04-2023. Prior to its substitution, clause (4) read as under:
*[The fee referred to in paragraph 2 shall be paid by the applicant within fifteen days from the date of receipt of intimation from the Board by way of demand draft in favour of Securities and Exchange Board of India' payable at Mumbai or at respective regional or local office. or by way of direct credit in the bank account through NEFT/RTGS/IMPS or any other mode allowed by RBI.] *[Inserted by the Securities and Exchange Board of India (Change In Conditions Of Registration Of Certain Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016.]

1. Honesty and fairness
   An investment adviser shall act honestly, fairly and in the best interests of its clients and in the integrity of the market.
2. Diligence
   An investment adviser shall act with due skill, care and diligence in the best interests of its clients and shall ensure that its advice is offered after thorough analysis and taking into account available alternatives.
3. Capabilities
   An investment adviser shall have and employ effectively appropriate resources and procedures which are needed for the efficient performance of its business activities.
4. Information about clients
   An investment adviser shall seek from its clients, information about their financial situation, investment experience and investment objectives relevant to the services to be provided and maintain confidentiality of such information.
5. Information to its clients
   An investment adviser shall make adequate disclosures of relevant material information while dealing with its clients.
6. Fair and reasonable charges
   An investment adviser advising a client may charge fees, subject to any ceiling as may be specified by the Board 133[*]. The investment adviser shall ensure that fees charged to the clients is fair and reasonable.
7. Conflicts of interest
   An investment adviser shall try to avoid conflicts of interest as far as possible and when they cannot be avoided, it shall ensure that appropriate disclosures are made to the clients and that the clients are fairly treated.
8. Compliance
   An investment adviser including its 134[partners, principal officer and persons associated with investment advice] shall comply with all regulatory requirements applicable to the conduct of its business activities so as to promote the best interests of clients and the integrity of the market.
9. Responsibility of senior management

133 The words “if any” was omitted by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020. 134 Substituted for the words “representative(s)” by the SEBI (Investment Advisers) (Amendment) Regulations, 2020, w.e.f. 30-09-2020.

The senior management of a body corporate which is registered as investment adviser shall bear primary responsibility for ensuring the maintenance of appropriate standards of conduct and adherence to proper procedures by the body corporate.